Santa Fe is known for its fine dining and steep menu prices, but the recipe for restaurant success in the City Different has changed.

The recession has ushered in a new era of midpriced and budget-priced restaurants. Some of the best performers during the past three years have been more moderately priced venues, and some higher-priced restaurants have opened second venues with lower prices.

A few higher-end establishments, including Max’s and Amavi, closed during the downturn. Still, the city’s anchor upscale foodie emporiums, The Compound Restaurant, Coyote Cafe and Geronimo, survived the recession and are showing better results in 2012. Santa Fe has been a gourmand’s destination because of its affluent homeowners and tourist clientele, who often pair art, wine and fine food in their travels and lifestyle.

One of the few new sights on the fine dining scene during the recession was The Palace Restaurant and Saloon. Texas technology consultant David Bigby invested heavily to bring the venerable Palace back in 2011 after it closed a decade ago. In August, Bigby promoted sous chef Ryan Gabel to run The Palace’s kitchen.

Michael O’Reilly, owner of Pranzo Italian Grill at 540 Montezuma Ave., altered his menu and created a new upstairs restaurant, Alto, this summer that serves smaller portions at lower prices. The changes have had an impact.

“Alto gave us 25 to 30 percent of our revenue right off the bat, and this really told us something. The customer wants value,” O’Reilly said. “Our suppliers told us the high-end restaurants in Santa Fe were down 7 percent in August, but the restaurants with entrees between $7 and $12 are up 30 percent. Everybody is looking at their wallets, and you have to listen to the customer.”

Another new restaurant is Taberna La Boca, opened by chef James Campbell Caruso. Taberna La Boca held its grand opening Sept. 22. Pricing starts at $4 for tapas in the 42-seat restaurant located at 125 Lincoln Avenue. Caruso’s first restaurant, the 50-seat La Boca, has been busy the past three years, and he has said he wanted a space for the overflow. Few entrees at La Boca exceed $20.

Both Coyote Cafe and The Compound have lower-priced brethren. The Compound’s owner Mark Kiffin opened Zacatecas, a tapas/tequila bar in Albuquerque’s Nob Hill, earlier this year. Coyote Cafe has operated its lower-priced rooftop Coyote Cantina above its more formal restaurant at 132 West Water St. for nearly a decade.

Geronimo has not changed its lineup and remains true to its upscale culinary quest, although its owners considered a lower-priced alternative.

“We love French food and had a space for a French bistro concept, but couldn’t get the deal done and now that idea is on the back burner,” said Chris Harvey, Geronimo’s managing partner. “After 22 years, we have not lost focus or altered the concept. We have cut inefficiencies but have kept quality.”

Harvey described the period from late 2008 to 2009 as “the end of fine dining in Santa Fe,” but said business has gradually improved. He said 2012 has been up more than 5 percent after a solid gain in 2011.

The recession’s impact can be seen in the number of restaurants for sale. Michael Greene, owner of brokerage Sam Goldenberg & Associates, has seven restaurants for sale, including Tomme and Atomic Grill. Tomme was originally listed for $165,000, but the price is now $139,000, according to Goldenberg’s website. Atomic Grill has one of the best locations in the City Different, sitting on the historic Plaza, and is priced at $295,000.

The highest sale price Greene has listed is for $495,000. The restaurant, which has cash flow of $173,000, is not listed by name.

Greene said some owners are selling because they are tired from the grind of running a restaurant during a recession or don’t have the capital to make the necessary cosmetic improvements in ultracompetitive Santa Fe.

“The less pricey restaurants were the most recession-proof. Places like The Shed, The Pantry, Tia Sophia’s and Cafe Pasqual’s all have the common denominators of good food, good service and a strong local following,“ Greene said. “Fine dining had the most difficult time, but 2012 is a better year and they are starting to make money again.”